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A Hypothetical Spin Off Of Brilacidin & PolyMedix Assets

Jul. 22, 2014 1:51 AM ETIPIX
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In a spinoff with Orphan Drug Status, Brilacidin could be used to raise enough IPO money to comfortably complete an 18 to 24 month FDA stage 3 trial. I believe that Brilacidin FDA stage 3, could be taken through FDA 4, using a combination of equity and debt in order to avoid much further dilution. I would assume that the debt would need to be carried no longer than 2 years, before FDA approved Brilacidin's revenue would begin flowing into the treasury to service and pay off the debt. I believe its obvious that Brilacidin FDA stage 4, along with the up and coming Definsin portfolio would find numerous licensing possibilities.

At the end of FDA 2b, I would realistically portray a PolyMedix assets IPO, along the following structure. 27 million shares total capitalization, 14 million shares offered to the public at $10.00 a share. Cellceutix would retain 11 million shares, 2 million shares are spread between PolyMedix Asset Corp new employees, the underwriter and legal fees. Cellceutix also receives 10 million in cash proceeds or the equivalent of 1 million shares worth of the public offering proceeds.

This scenario is quite real for a FDA stage 3 major blockbuster potential, which is part of a therapeutic platform of 8 other drugs. The PolyMedix Assets company should immediately trade on NASDAQ. Cellceutix would reap approximately 10 million in cash, double what it cost to buy PolyMedix Assets, and also sport a marginable asset of 110 million dollars or more of PolyMedix stock on its new NASDAQ readying balance sheet. As an added measure of security to the PolyMedix Assets company, it could be given a million warrants in Cellceutix shares.

The above was inspired by John's Investors Hub Post, which is below. I have cut, copied in the raw and posted.

John B Sunday, 07/20/14 07:24:29 AM
Re: John B post# 63660
Post # of 63739

Relating to the article, spinning off Brilacidin and the other Poly assets into a new company (IPO) to unlock shareholder value. This is a great idea, if we continue to remain undervalued well after good Phase 2B results. This would raise new money through the IPO and would reduce our relying on Aspire. This would force the market to put a value on these assets. If down the road we are still extremely undervalued, someone who has Leo's ear should suggest this idea to him.

My Commentary On John

John understands that only if Cellceutix is unable to reach a favorable deal with a major pharmaceutical, should the above mentioned hypothetical spinoff be pursued.

Dilution is enemy number 1 of a microcap investor, and we all should know that Cellceutix does have options. The point is well taken that selling a major percentage of The PolyMedix Assets to the public is also, a form of dilution.

ER

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